Agenda item

 

As recommended by the Commissioners on 27^th February, 2015.

 

Recorded Vote.

Further to Minute No. 5 of the meeting of the Commissioners’ held on 27th February, 2015 consideration was given to the proposed Revenue Budget for 2015/16 based on the outcome of the Council’s Financial Settlement.

 

The Leader of the Council outlined the budget proposals following a series of successive budget cuts and which required a further £23 million in savings.

 

The large majority of the savings proposed did not come directly from frontline services, but subjecting local Councils to further cuts was not sustainable, but the task was to deliver on the priorities of the public with a greatly diminished resource to drive forward the change that was needed.

 

Top of the priority list was Children’s Safeguarding, which not only protected the core but increased funding in three key areas:-

 

·                £234,000 for the development of outreach youth work based provision to engage with young people at risk of Child Sexual Exploitation.

·                £390,000 for additional, permanent, social workers to make sure children at risk are seen by Children’s Services as quickly as possible.

·                £200,000 additional support for Child Sexual Exploitation victims and survivors.

 

£125,000 of short term funding announced after the Jay Report, was allocated to a number of local charities to increase capacity quickly to provide some of the support that victims and survivors need.  Within this budget the amount would be increased and mainstreamed to help to provide increased certainty over the coming months and years.

 

The funding would be allocated based on the needs analysis currently being conducted and informed by the views and experiences of victims and survivors themselves.

 

Local third sector groups were being encouraged to bid for further grant funding from the Government, but this was no substitute for the measures being proposed. 

 

To partly fund the measures above, it was proposed that Council Tax rise by 1.95% and amounted to 31p per week for the average Rotherham household in Band A.

 

To offset the potentially substantial one-off costs arising from the Jay Report a £8.4 million “Transformation Reserve” was proposed in order to meet these potential costs.

 

As the Government grants declined, the Council was increasingly dependent on retained business rates and reducing costs by helping people back to work.  It was, therefore, proposed that:-

 

1.      No revenue budget cuts to Economic Development staff.

2.      To continue as a Living Wage employer to 1,500 Council staff, subject to agreement from the Commissioners.

3.      To continue to provide Council Tax Support to ensure that those on the very lowest incomes continued to receive a 91.5% discount.

4.      To maintain a Local Welfare Fund for those in real financial crisis situations.

 

The choices being proposed would prevent net job losses.

 

In response to views of residents about litter, it was proposed to restore £200,000 of funding to Streetpride to address basic issues of weeds and litter.

 

The capital budget proposals would also see an extra £5 million spent on road maintenance and resurfacing over the coming two years and doubles the existing planned expenditure, and should see an estimated 50 km of roads being repaired.

 

The majority of the savings required were from back office and changing financial arrangements, remodelling Waste PFI costs, capitalising the REWS and Assistive Technology budgets, changes to the way  Drug and Alcohol Services were organised, closure of the Imagination Library and the reduction in funding to City Learning Centres.

 

Furthermore, savings would be realised from the Members’ budgets, which would see the withdrawal of the Leader’s car, reductions in the Mayor’s Civic budget and reducing allowances of all Councillors to the South Yorkshire average.

 

Discussions had also taken place with the Boundary Commission, but it was too late for them to make changes now in time for 2016’s all-out elections, but this would form the basis of some consideration for the 2020 elections.

 

Testimony was paid to the hard work of the former Deputy Leader and her colleagues, in producing the budget being proposed today which was recommended for the approval of members.

 

Councillor Turner pointed out that the 1.95% increase in Council Tax had not been acrossed across the Council, but only from the majority party.

 

Councillor Hoddinott pointed out the difficult position for the Local Authority, not only had it had five years of successive cuts, but next year would be facing 28% less Government funding.  The challenges facing the Council were huge, but this budget had been developed having listened to the concerns of local people.

 

The publication of the Jay and Casey Reports had resulted in measures being put in place to support the budget moving forward. It was crucial that the support was provided for the victims and survivors of child sexual exploitation, that additional staff were provided and outreach work was further developed.

 

The proposals were funded by the increase in Council Tax, but whilst not taken lightly were commended for approval.

 

Councillor Reynolds pointed out that the raising of Council Tax would only affect the less well off and compared this to the cost of traffic light installation work at Pool Green Roundabout.

 

The Mayor and Councillor Beck provided clarification on the funding allocation for Pool Green Roundabout and also Old Flatts Bridge, the majority of which was provided by the external Pinchpoint Fund of around £8 million and the Council’s £1 million contribution.

 

Councillor Whelbourn sought advice on whether the withheld monies associated with the two funding bids would now be released and received confirmation that this would take place shortly.

 

The Leader reconfirmed the budget proposals as outlined above which would bring much needed funding to victims and survivors of child sexual exploitation and improvements to traffic infrastructure.

 

The Mayor used his discretion to allow Opposition Members to put forward an alternative budget for Rotherham, despite the debate having been concluded.

 

Councillor Vines, UKIP Opposition Leader, proposed an amendment to the Rotherham’s Budget for 2015/16 believing Rotherham people had suffered enough and needed a lift to brighten up and for people to be proud of their town.

 

The savage cuts and the uncertainties and unknowns moving forward required the need to look to find other funding.

 

To this end, fully costed proposals were proposed which would not add any extra burden to the taxpayer or the finances of this Council and would assist to restore pride by including:-

 

·                Removing some shrub beds which were notorious for being litter traps and replace them with well-maintained full colour flower beds.

 

·                Grassed areas kept cut to a neat and tidy standard.

 

·                Clamping down on litter and dog fouling by being more proactive and having a lower tolerance on the perpetrators and increase the number of fixed penalty fines.

 

·                Installing colourful flower filled hanging baskets on town centre lamp post’s

 

·                Installing planters around the Town to give further colour.

 

More funding would be sought to provide help victims of child sexual exploitation to give them the courage and strength to come forward to bring their perpetrators to justice.  Consultation with victims and their families was important and their views would contribute to the support they required moving forward.  It was, therefore, proposed that a grant based ringfenced fund  be set aside to help fund such an organisation. This would be in addition to any other funding streams identified in the main Council budget.

 

Further opportunities should be explored to offset the funding gap and shortfall and this should be mainly funded by Elected Members with a reduction in the allowance to show real commitment and leadership.

 

The proposed budget would see savings of £474,500 through Member-related activity with extra service commitment of the same amount for grass cutting and ground works, shrub, lamp post and planters, victim engagement and an income feasibility study.  This did not include any increase in Council Tax.

 

The Leader raised a number of issues with the alternative budget proposals and pointed out that under the original budget proposals funding for victims and survivors was being mainstreamed with additional support for more social work staff.  The alternative budget proposals fell short of this and on this basis was unable to support the alternative proposals.

 

Councillor Currie was of the view that the alternative budget was not sustainable and only by raising the Council Tax could the proposals move forward.

 

Councillor Reynolds suggested a more cross party approach should have been developed.

 

Alternative Budget - amendment to the original motion:-

 

Mover:-  Councillor C. Vines                      Seconder:-  Councillor Cowles

 

The amendment to the motion was put to the vote, and was defeated.

 

Resolved:-  (1)  That a General Fund Revenue Budget for 2015/16 of £203.554m to be allocated to services be approved.

 

(2)  That the re-designation of the Commutation Adjustment Earmarked Reserve to the ‘Transformation Reserve’ earmarking these funds to meet the likely significant costs and potential liabilities facing the Council to enable it to positively respond and address the improvements required as stated in the Professor Jay, Ofsted and Louise Casey Reports in order to bring about a ‘fit for purpose’ Council, at the earliest opportunity be approved.

 

(3)  That an increase in the Council Tax of 1.95% in respect of this Council’s own Budget giving an annual Band D Equivalent Council Tax of £1,277.73 be approved.

 

(4)  That the additional Council Tax generated from a proposed 1.95% increase (£590k) and the net additional funding announced in Rotherham’s Final Local Government Settlement (£434k) be approved and invested into support for Child Sexual Exploitation victims and survivors (£200k), additional social workers to make sure children at risk are seen by Children’s Services as quickly as possible, (£390k), development of outreach youth based work provision to engage with young people at risk of Child Sexual Exploitation (£234k) and for improving grounds maintenance and the general cleanliness and attractiveness of the Borough (£200k).   

 

(5)  That the comments and advice of the Strategic Director of Resources and Transformation, provided in compliance with Section 25 of the Local Government Act 2003, as to the robustness of the estimates included in the Budget and the adequacy of reserves for which the Budget provides be noted and accepted.

 

Mover:-  Councillor Read, Leader             Seconder:-  Councillor Watson,

                                                                        Deputy Leader                                                                     

(The Mayor – Councillor Foden, Councillors Ahmed, Ali, Andrews, Astbury, Atkin, Beaumont, Beck, Buckley, Burton, Clark, Currie, Dalton, Doyle, Ellis, Godfrey, Gosling, N. Hamilton, Havenhand, Hoddinott, Johnston, Kaye, Lelliott, McNeely, Pitchley, Read, Robinson, Roche, Roddison, Rushforth, Sangster, Sansome, Sharman, Sims, Smith, Steele, Swift, Tweed, Wallis, Watson, Whelbourn, Whysall, Wootton and Wyatt voted in favour of the original budget)

 

(Councillors Cowles, Finnie, Gilding, Hunter, Jepson, Middleton, Parker, Reeder, Reynolds, Turner, C. Vines and M. Vines voted against the original budget)